China issues new rules on carbon emissions trading

Chinese Premier Li Qiang has signed a decree of the State Council, heralding the release of carbon emissions trading regulations, as outlined in an official release by China's cabinet on February 4. Effective on May 1, the rules are designed to establish a legal framework for the national carbon emissions trading market and foster its healthy and sustainable growth.

Carbon emissions trading stands as a pivotal policy tool aimed at curbing the emissions of greenhouse gases such as carbon dioxide, through market mechanisms. The implementation of such measures aligns with China's commitment to peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.

The newly introduced regulations consist of 33 articles focusing on constructing the essential institutional framework and ensuring the effective implementation of carbon emission trading policies.

According to the regulations, the supervision and management of carbon emissions trading and related activities fall under the purview of the ecological and environmental departments of the State Council. The regulations also delve into specifics, outlining trading products, methods, and the distribution of carbon emission quotas.

An additional crucial facet of the released regulations involves a commitment to combating data fabrication on carbon emissions. The measures strengthen the primary responsibility of key emission units, bolster the management of technical service institutions, intensify supervision and inspection processes, and tighten sanctions.

China's national carbon emissions trading market began operations in July 2021, and by end-January this year, the market recorded a total trading volume of 444.6 million tonnes, with a cumulative transaction value amounting to Yuan 25.1 billion, Mysteel Global notes.

Written by Rong Zhang, zhangronga@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com